SOLUTION: $100 is deposited monthly into an ordinary annuity that earns 1.8% per month compounded monthly. Find the amount at the end of 20 months. (Round your final answer to two decimal pl

Question 1127928: $100 is deposited monthly into an ordinary annuity that earns 1.8% per month compounded monthly. Find the amount at the end of 20 months. (Round your final answer to two decimal places.)
$
Mr. Nakamura wants to make monthly deposits into an annuity for his grandchild so that $25,000 will be available in 8 years. If the interest rate is 8% compounded monthly, find the monthly deposit. (Round your final answer to two decimal places.)
$

Answer by Boreal(15235) (Show Source): You can put this solution on YOUR website!
P=100[(1+.018)^20-1]/0.018
=$2381.93
25000=p(1+(.08/12))^96-1/(.08/12) Note: I am using annual interest rate here of 8%, whereas in the first problem it was monthly interest rate.
=$186.75
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